Hess Corporation Announces 2013 Capital and Exploratory Budget

January 09, 2013 08:00 AM Eastern Standard Time

NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) announced today a 2013 capital and
exploratory budget of $6.8 billion, which is down 18 percent from 2012
expenditures of approximately $8.3 billion. Of the $6.7 billion budgeted
for Exploration and Production, $2.7 billion (40 percent) is dedicated
to unconventional shale resources and the remainder is focused on
conventional resources, with $1.85 billion (28 percent) for production,
$1.6 billion (24 percent) for developments and $550 million (8 percent)
for exploration. As in recent years, $100 million is dedicated to
Marketing and Refining and Corporate.

John Hess, Chairman and CEO, commented, “Our Corporation’s capital and
exploratory budget for 2013 is focused on attractive investment
opportunities and consistent with our plan, announced in July 2012, to
significantly reduce overall expenditures in 2013.”

Greg Hill, President of Worldwide Exploration and Production, stated,
“Our expenditures in the Bakken are planned to be $2.2 billion in 2013
versus approximately $3.1 billion in 2012. This reduced level of spend
is driven by lower well costs associated with our transition to pad
drilling from hold by production mode and decreased investments in
infrastructure projects. In addition, we plan to increase our
expenditures in the emerging Utica shale play to $400 million from $300
million last year.”

“In 2013, our production budget includes infill drilling programs at
Block G in Equatorial Guinea and the Valhall Field in Norway. Key
development projects include Tubular Bells in the deepwater Gulf of
Mexico and the North Malay Basin project in Malaysia. Our exploration
program includes wells in Ghana and Kurdistan.”

Unconventional expenditures of approximately $2.7 billion include:

Development of the Bakken Shale in North Dakota, where Hess plans to
operate 14 rigs and complete the expansion of the Tioga Gas Plant

Completing seismic and drilling two wells at the Dinarta and Shakrok
Blocks (Hess 80 percent – operator) in Iraqi Kurdistan

2013 Estimated Capital and Exploratory Expenditures

($ Millions)

By Segment:

By Region:

Exploration and Production

Exploration and Production

Unconventionals

2,700

United States

3,600

Production

1,850

Europe

1,000

Development

1,600

Africa

700

Exploration

550

Asia and Other

1,400

Total Exploration and Production

6,700

6,700

Marketing, Refining and Corporate

100

Total

6,800

Hess Corporation is a leading global independent energy company
primarily engaged in the exploration for and production of crude oil and
natural gas, and the marketing of refined petroleum products, natural
gas and electricity. More information on Hess Corporation is available
at http://www.hess.com.

Cautionary Statements

This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.These
projections and statements reflect the company’s current views with
respect to future events and financial performance.No assurances
can be given, however, that these events will occur or that these
projections will be achieved, and actual results could differ materially
from those projected as a result of certain risk factors.A
discussion of these risk factors is included in the company’s periodic
reports filed with the Securities and Exchange Commission.